AUD/USD remains weak and could head towards the 0.7170 area in the near term. suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the underlying tone still appears to be a tad soft and there is chance for AUD to test 0.7200’. We added, ‘a clear break of this level is unlikely’. However, AUD did not test 0.7200 as it edged lower to 0.7208. Momentum indicators are turning neutral and AUD is likely to consolidate for today, expected to be within a 0.7205/0.7255 range.”

Next 1-3 weeks: “There is no change in our view from Monday (22 Nov, spot at 0.7235). As highlighted, the weakness in AUD over the past couple of weeks appears to be heading towards the Sep’s low near 0.7170. However, downward momentum is not very strong for now and it may take a while before 0.7170 comes into the picture. On the upside, a breach of 0.7285 (‘strong resistance’ level was at 0.7315 yesterday) would indicate that the current weakness has stabilized.”